Monterey supervisors wrestle with how to preserve public ownership rule for desal plant

A bid by Supervisor Jane Parker to add the county's public desalination plant ownership rule to the area's coastal growth plan was rejected by the Board of Supervisors on Tuesday.

The rejection came as county officials maneuver to preserve at least part of the law they appear to have accepted as vulnerable to legal challenge.

Parker, who is seeking to replace Santa Cruz County Supervisor Mark Stone on the California Coastal Commission, proposed that the board look at adding the desal ownership ordinance to the Local Coastal Plan. The plan governs development along the county's coast from north of Moss Landing to Big Sur.

But Carl Holm, deputy director of the county Resource Management Agency, opined in a staff report that the ordinance already applied countywide and didn't need to be added to the coastal plan.

A handful of speakers weighed in, with Peninsula water activist George Riley and LandWatch Executive Director Amy White arguing it was an "appropriate" move and would show the county remains serious about defending its legal oversight of desal plants along its portion of the Central Coast.

But Supervisor Simon Salinas, who is also now seeking appointment to the Coastal Commission, said he didn't believe the board needed to "take the extra step right now." He urged those supporting such a move to direct their energy toward seeking state legislative backing for the county's authority over desal ownership.

This month, county attorneys have been in private talks with the state Public Utilities Commission in an effort to salvage the county's desal ownership ordinance. This comes on the heels of a proposed decision from administrative law judge Gary Weatherford arguing that the county's ordinance was pre-empted by the PUC's authority. Weatherford argued the county's ordinance would not apply to California American Water's proposed Peninsula water supply project because the company was under the PUC's jurisdiction.

Early this month, County Counsel Charles McKee and attorney Dan Carroll met with commissioner representatives and expressed concerns that the proposed decision interfered with the county's efforts to reach a settlement with Cal Am regarding a county lawsuit designed to seek a ruling on the applicability of the desal ownership ordinance.

The attorneys also suggested the proposed decision left the door open for a "favorable disposition" of the case aimed at balancing the county's interests in public health and safety with the commission's authority. They asked the commission to consider postponing a final decision until next month at the earliest to allow more time for negotiations.

At the same time, the county attorneys sought the commission's support for a public governance proposal offered by the Monterey Peninsula Regional Water Authority in conjunction with the county and the Monterey Peninsula Water Management District. The proposal, submitted earlier this month, would allow a three-member panel various levels of input on virtually every aspect of Cal Am's water project.

Cal Am has until Oct. 25 to respond to the proposal, along with proposals submitted by the city of Pacific Grove, and has been directed to consider them in good faith.

Cal Am also has until Nov. 1 to submit a contingency plan in case the water project is delayed or scuttled by a number of potential obstacles. Some have suggested a public ownership plan could be included.

Meanwhile, at Tuesday's board meeting, Supervisor Lou Calcagno mentioned that a letter had been received requesting the board's formal support for Parker's quest for a Coastal Commission seat. Calcagno pointed out that Salinas had also expressed interest in seeking appointment to the commission, and said the board should consider which candidate to support.